For information about claiming deductions for the decline in value of answering machines, mobile phones, pagers and other telecommunications equipment, see Capital allowances.

Calculators and electronic organisers

For information about claiming deductions for the decline in value of calculators and electronic organisers, see Capital allowances.

Capital allowances

You can claim a deduction, called a capital allowance, for the decline in value of equipment used for work. If the equipment is also used for private purposes, you cannot claim a deduction for that part of the decline in value.

You cannot claim a deduction if the equipment is supplied by your employer or any other person.

Generally, the amount of your deduction depends on the effective life of the equipment.

Equipment costing $300 or less

If you purchased equipment costing $300 or less and you use it mainly for work, you can claim an immediate deduction for the work-related portion of the cost.

You cannot claim an immediate deduction if:

the equipment is part of a set that you buy in the same income year and the total cost of the set is more than $300 (the set rule)

the equipment is one of a number of identical or substantially identical items you buy in an income year and the total cost of the items is more than $300 (the multiples rule).

Low-value pool

You also have the option to pool equipment costing less than $1,000 and equipment written down to less than $1,000 under the diminishing value method. You work out a deduction for the decline in value of equipment in this low-value pool by a single calculation using set rates.

For more information on claiming a deduction for the low-value pool, see question D6 in Individual tax return instructions and make your claim at item D6 on your tax return.

Equipment for which you may be able to claim a capital allowance includes:

You cannot claim a deduction for hairdressing, cosmetics, hair and skin care products as they are private expenses.

Home office

Private study

You can claim a deduction for the additional running expenses of an office or a study at home that you use for income-producing activities. Running expenses include decline in value of home office equipment, the costs of repairs to your home office furniture and fittings, and heating, cooling, lighting and cleaning expenses. You cannot claim occupancy expenses (for example, rent, rates, mortgage interest and house insurance premiums) unless you are carrying on a business. If your only income is paid to you as an employee, you are not considered to be carrying on a business.

Insurance of tools and equipment

You can claim a deduction for the cost of insuring your tools and equipment to the extent that you use them for work.

Interest costs

You can claim the cost of interest on money borrowed to purchase work-related equipment. If the equipment was also used for private purposes, you cannot claim a deduction for that part of the interest.

Meals

You cannot claim a deduction for the cost of meals eaten during a normal working day as it is a private expense, even if you receive an allowance to cover the meal expense. For information about claiming deductions for the cost of meals eaten during overtime, see Overtime meals.

Newspapers

You cannot claim a deduction for the cost of newspapers as it is a private expense.

Overtime meals

An amount for overtime meals that is part of your normal salary and wage income is taxed as part of your income. It is not an 'overtime meal allowance'.

You must include amounts you received as 'overtime meal allowance' at item 2 on your tax return.

You can claim for overtime meal expenses only on those occasions when:

you worked overtime

your employer paid you an overtime meal allowance under an industrial law, award or agreement.

If you received an award overtime meal allowance which is not shown on a payment summary, you may choose not to include the allowance as income at item 2 on your tax return and not claim a deduction as long as:

the allowance does not exceed the Commissioner’s reasonable allowance amount

you have fully spent it.

Professional library

For information about claiming deductions for the decline in value of a professional library, see Capital allowances.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.